Skip to main content
SpringerLink
Log in

The North-South HOS Model, Inequality and Globalization

  • Chapter
Growing Income Inequalities

Abstract

Three main explanations have been given for the increase in inequality observed in advanced countries (the North) in the last 30 years: institutional changes, skill-biased technological change, and globalization.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Acemoglu, D. (1998) ‘Why Do New Technologies Complement Skills? Directed Technological Change and Wage Inequality’, Quarterly Journal of Economics, 113, 1055–189.

    Article  Google Scholar 

  • Agell, J. and P. Lundborg (1995) ‘Fair Wages in the Open Economy’, Economica, 62, 325–51.

    Article  Google Scholar 

  • Albert, M. and J. Merckl (2001)‘Efficiency Wage, Unemployment and Intersectoral Wage Differentials in a Heckscher-Ohlin Model’, German Economic Review, 2, 287–301.

    Article  Google Scholar 

  • Batra, R. N. and F. R. Casas (1973) ‘Intermediate Products and the Pure Theory of International Trade: A Neo-Heckscher-Ohlin Framework’, American Economic Review, 63 (3), 297–311.

    Google Scholar 

  • Behrman, J. R., N. Birdsall and M. Székely (2000) ‘Economic Reform and Wage Differentials in Latin America’, IADB Working Paper, No 435.

    Google Scholar 

  • Borsook, I. (1986) ‘Earnings Ability and International Trade’, Journal of International Economics, 22, 281–95.

    Article  Google Scholar 

  • Brecher, R. (1974) ‘Minimum Wage Rates and the Pure Theory of International Trade’, Quarterly Journal of Economics, 88, 98–116.

    Article  Google Scholar 

  • Buiter, W. H. (1981) ‘Time Preference and International Lending and Borrowing in an Overlapping Generations Economy Model’, Journal of Political Economy, 89, 769–97.

    Article  Google Scholar 

  • Cartiglia, F. (1997) ‘Credit Constraints and Human Capital Accumulation in the Open Economy’, Journal of International Economics, 43, 221–36.

    Article  Google Scholar 

  • Chipman J. S. (1969) ‘Factor Price Equalization and the Stolper-Samuelson Theorem’, International Economic Review, 10, 399–406.

    Article  Google Scholar 

  • Chusseau, N., M. Dumont and J. Hellier (2008) ‘Explaining Rising Inequality: Skill-biased Technological Change and North-South Trade’, Journal of Economic Surveys, 22, 409–57.

    Article  Google Scholar 

  • Cragg, M. I. and M. Epelbaum (1996) ‘Why Has Wage Dispersion Grown in Mexico? Is It the Incidence of Reforms or the Growing Demand for Skills?’, Journal of Development Economics, 51 (1), 99–116.

    Article  Google Scholar 

  • Davidson, C., M. Martin and S. J. Matusz (1988) ‘The Structure of Simple General Equilibrium Models with Frictional Unemployment’, Journal of Political Economy, 96 (6), 1267–93.

    Article  Google Scholar 

  • Davidson, C., M. Martin and S. J. Matusz (1999) ‘Trade and Search Generated Unemployment’, Journal of International Economics, 48 (2), 271–99.

    Article  Google Scholar 

  • Davis, D. R. (1998) ‘Does European Unemployment Prop up American Wages? National Labor Markets and Global Trade’, American Economic Review, 88, 478–94.

    Google Scholar 

  • Deardorff, A. V. (1998a) ‘Fragmentation in Simple Trade Models,’ RSIE Discussion Paper 422, University of Michigan, January. http://www.spp.umich.edu/rsie/workingpapers/wp.html

  • Deardorff, A. V. (1998b)‘Fragmentation Across Cones’, RSIE Discussion Paper 427, August, http://www.spp.umich.edu/rsie/workingpapers/wp.html

  • Desjonquères, T., S. Machin and J. VanReenen (1999) ‘Another Nail in the Coffin? Or Can the Trade Based Explanation of Changing Skill Structures be Resurrected?’, Scandinavian Journal of Economics, 101 (4), 533–54.

    Article  Google Scholar 

  • Dixit, A. and G. M. Grossman (1982) ‘Trade and Protection with Multi-Stage Production’, Review of Economic Studies, 49 (4), 583–94.

    Article  Google Scholar 

  • Dornbusch, R., S. Fisher, and P. A. Samuelson (1980) ‘Heckscher-Ohlin Trade Theory with a Continuum of Goods’, Quarterly Journal of Economics, 95 (2), 203–24.

    Article  Google Scholar 

  • Egger, H. and U. Kreickemeier (2009), ‘Firm Heterogeneity and the Labor Market Effects of Liberalization’, International Economic Review, 50, 187–216.

    Article  Google Scholar 

  • Eicher, T. (1999) ‘Trade, Development and Converging Growth Rates: Dynamic Gains from Trade Reconsidered’, Journal of International Economics, 48, 179–98.

    Article  Google Scholar 

  • Falvey, R., D. Greenaway and J. Silva (2008) ‘Human Capital Adjustment to Trade’, in Greenaway D., R. Upward and P. Wright (eds) Globalisation and Labour Market Adjustment (Palgrave McMillan), 97–114.

    Google Scholar 

  • Falvey, R., D. Greenaway and J. Silva (2010) ‘Trade Liberalization and Human Capital Adjustment’, Journal of International Economics, 81, 230–9.

    Article  Google Scholar 

  • Felbermayr, G., J. Prat and H -J. Schmerer (2011) ‘Globalization and Labor Market Outcomes: Wage Bargaining, Search Frictions, and Firm Heterogeneity’, Journal of Economic Theory, 146 (1), 39–73.

    Article  Google Scholar 

  • Findlay, R. and R. Jones (2000) ‘Factor Bias and Technical Progress’, Economics Letters, 68, 303–8.

    Article  Google Scholar 

  • Findlay, R. and R. Jones (2001) ‘Input Trade and the Location of Production’, American Economic Review, 91 (2), 29–33.

    Article  Google Scholar 

  • Findlay, R. and H. Kierzkowski (1983) ‘International Trade and Human Capital: a Simple General Equilibrium Model’, Journal of Political Economy, 91, 957–78.

    Article  Google Scholar 

  • Gale, D. (1971) ‘General Equilibrium with imbalance of Trade’, Journal of International Economics, 1, 141–58.

    Article  Google Scholar 

  • Gale, D., (1974) ‘The Trade Imbalance Story’, Journal of International Economics, 4, 119–37.

    Article  Google Scholar 

  • Goldberg P. K. and N. Pavcnik (2007) ‘Distributional Effects of Globalization in Developing Countries’, Journal of Economic Literature, 45, 39–82.

    Article  Google Scholar 

  • Griliches, Z. (1969) ‘Capital–skill Complementarity’, Review of Economics and Statistics, 51, 465–8.

    Article  Google Scholar 

  • Harrison, A., J. McLaren and M. S. McMillan (2010)‘Recent Findings on Trade and Inequality’, NBER Working Paper Series, No 16425.

    Google Scholar 

  • Hellier J. and N. Chusseau (2010), ‘Globalization and the Inequality-Unemployment Trade-off’, Review of International Economics, 15, 1028–43.

    Article  Google Scholar 

  • Helpman, E. and O. Itskhoki (2010) ‘Labor Market Rigidities, Trade and Unemployment’, Review ofEconomic Studies, 77 (3), 1100–37.

    Article  Google Scholar 

  • Jones, R. W. and H. Kierzkowski (1990) ‘The Role of Services in Production and International Trade: A Theoretical Framework’, in R. Jones and A. Krueger (eds) The Political Economy of International Trade (Basil Blackwell, Oxford).

    Google Scholar 

  • Jones, R. W. and H. Kierzkowski (2000)‘A Framework for Fragmentation’, Tinbergen Institute Discussion Paper, TI 2000–056/2.

    Google Scholar 

  • Jones, R. and S. Marjit (1992) ‘International Trade and Endogenous Production Structures’, in W. Neuefrind and R. Riezman (eds) Economic Theory and International Trade (Springer-Verlag).

    Google Scholar 

  • Jones, R., H. Kierzkowski and G. Leonard (2002)‘Fragmentation and Intra-industry Trade’, in P. Lloyd and H. Lee (eds) Frontiers of Research in Intra-industry Trade (Palgrave Macmillan).

    Google Scholar 

  • Kreickemeier, U. (2008) ‘Unemployment in Models of International Trade’, in D. Greenaway, R. Upward and P. Wright (eds) Globalization and Labour Market Adjustment (Palgrave Macmillan), 73–96.

    Google Scholar 

  • Kreickemeier, U. and D. Nelson (2006) ‘Fair Wages, Unemployment and Technological Change in a Global Economy’, Journal of International Economics, 70, 451–69.

    Article  Google Scholar 

  • Krugman, P. (1995) ‘Growing World Trade: Causes and Consequences’, Brookings Papers on Economic Activity: Macroeconomics 1, 327–77.

    Article  Google Scholar 

  • Krugman P. (2008) ‘Trade and Inequality Revisited’, Brookings Papers on Economic Activity, Spring, 103–37.

    Google Scholar 

  • Krugman P. and R. Lawrence (1993), ‘Trade, Jobs and Wages’, NBER Working Paper nb. 4478.

    Google Scholar 

  • McKenzie, L. W. (1955) ‘Equality of factor prices in world trade’, Econometrica, 23, 239–57.

    Article  Google Scholar 

  • Markusen, J. (2005) ‘Modelling the Offshoring of White-collar Services: From Comparative Advantage to the New Theories of Trade and FDI’, NBER Working Paper 11827.

    Google Scholar 

  • Mountford, A. (1998)‘Trade, Convergence and Overtaking’, Journal of International Economics, 46, 167–82.

    Article  Google Scholar 

  • Onika, H. and H. Uzawa (1965) ‘Patterns of Trade and Investment in a Dynamic Model of International Trade’, Review of Economic Studies, 32, 15–38.

    Article  Google Scholar 

  • Oslington, P. (2002) ‘Factor Market Linkages in a Global Economy’, Economics Letters, 76 (1), 85–93.

    Article  Google Scholar 

  • Ranjan, P. (2001) ‘Dynamic Evolution of Income Distribution and Credit-constrained Human Capital Investment in Open Economies’, Journal of International Economics, 55, 329–58.

    Article  Google Scholar 

  • Ranjan, P. (2003) ‘Trade Induced Convergence through Human Capital Accumulation in Credit-constrained Economies’, Journal of Development Economics, 72, 139–62.

    Article  Google Scholar 

  • Romalis, J. (2004) ‘Factor Proportion and the Structure of Commodity Trade’, American Economic Review, 94 (1), 67–97.

    Article  Google Scholar 

  • Venables, A. (1999) ‘Fragmentation and Multinational Production’, European Economic Review, 43, 935–45.

    Article  Google Scholar 

  • Xiang, C. (2007) ‘New Goods and the Skill Premium’, Journal of International Economics, 71, 133–47.

    Article  Google Scholar 

  • Xu, Y. (1993) ‘A General Model of Comparative Advantage with Two Factors and a Continuum of Goods’, International Economic Review, 34 (2), 365–80.

    Article  Google Scholar 

  • Zhu, S. C. (2001) ‘Technical Change, International Trade and Inequality’, PhD thesis, University of Toronto.

    Google Scholar 

  • Zhu, S. C. (2004) ‘Trade, Product Cycles, and Inequality Within and Between Countries’, Canadian Journal of Economics, 37 (4), 1042–60.

    Article  Google Scholar 

Download references

Authors
  1. Joël Hellier
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. University of Nantes, France

    Joël Hellier (Professor of Economics) (Professor of Economics)

  2. University of Lille 1, France

    Nathalie Chusseau (Associate Professor of Economics) (Associate Professor of Economics)

Copyright information

© 2013 Joël Hellier

About this chapter

Cite this chapter

Hellier, J. (2013). The North-South HOS Model, Inequality and Globalization. In: Hellier, J., Chusseau, N. (eds) Growing Income Inequalities. Palgrave Macmillan, London. https://doi.org/10.1057/9781137283306_5

Download citation

Publish with us

Policies and ethics

Search

Navigation